Lib Dems can keep fraudster's £2.4m

The Liberal Democrats have received a boost to their election plans after the donations watchdog ruled they could keep a £2.4m gift from a company owned by a convicted fraudster.

An investigation by the Electoral Commission found that the party does not have to return the money from 5th Avenue Partners, despite court rulings that it was set up by director Michael Brown to con investors.

However, the commission's ruling could yet be challenged in the high court by one of Brown's creditors, whose solicitor last night called the verdict a "whitewash".

Tony Brown said his client Robert Mann, defrauded out of $5m (£3m) by Brown, was considering calling for a judicial review of the decision.